Design platform Canva is significantly raising prices for some of its users, citing its expanded suite of AI-powered tools as the reason behind the hike. Subscribers to Canva Teams on older pricing plans will experience a 300% increase, with the cost of a five-person plan jumping from $119.99 to $500 per year. Customers will receive a 40% discount for the first 12 months before the new pricing takes full effect.

The price increase comes as Canva continues to roll out its advanced AI-powered design features, including Magic Studio, which enables users to create designs faster and more efficiently. Magic Studio integrates AI-generated content, automated design suggestions, and enhanced collaboration tools, aiming to streamline workflows for businesses and creative teams.

In response to user concerns about the steep price jump, Canva emphasized the value of its new AI capabilities, which it claims offer substantial productivity improvements for teams, especially those involved in high-volume design projects.

This move reflects a broader trend of tech companies capitalizing on AI advancements to add value to their products—at a cost to consumers.

For users with smaller teams, Canva has introduced a discount plan to ease the transition, but the full impact of the new pricing will hit after the first year.